Clean Credit Report – FAQ & Answers
Clean Credit Report
A clean credit report is something we all strive for, however, many people find themselves completely confused when it comes to their credit score and credit report.
Many people do not know how to improve their credit and many others find themselves striving to reach a credit standing that is not necessary or possible.
The following are the answers to some of the most frequently asked questions concerning clean credit reports and scores.
1. What is a credit score anyway? Your credit score is a number which a lender uses to assess whether or not you are capable of repaying debt. The number is calculated using information from your credit report and is made available to a lender upon request.
2. Do I only have one credit score? The simple answer here is, No. There are three main credit reporting agencies that will assess and keep a credit report in your name. However, banks, loan companies and other financial institutions can report items to any one of these credit agencies.
Chances are your credit score is slightly different from one credit agency to the next. Finding it out is up to you. You must request a copy of your credit report from each credit reporting agency and compare.
3. Can I really “Buy” a clean credit report? When you see an advertisement which states that a company will sell you a clean credit report, do not believe it. You can’t “buy” a clean credit report. You can dispute negative items and try to clean up your credit by paying your bills on time, and not maxing out your credit cards, but you can’t buy one.
You can however hire someone to help you clean up your credit report, but it is nothing that you can not do yourself and it does not guarantee a perfect credit score, though it’s sure to improve it.
4. Do I really need a clean credit report and a perfect credit score? The answer to this question really depends on who you ask and why. If you are hoping to receive a large unsecured loan, then the answer will certainly be yes.
Lenders consider your credit score and report to be a valuable “sneak peek” into your financial past. If they see a great number of missed payments they will assume this means you are an unnecessary risk.
With that being said, there are very few lenders who insist on a “perfect” score or completely clean credit report. For the most part if the mistakes made can be explained, a lender will do what they can to help and will assume you have corrected your ways.
